Copenhagen Infrastructure Partners (CIP) has reached a €375m first close on its CI Advanced Bioenergy Fund I, a vehicle targeting advanced biogas and biofuels production projects in Europe and North America.
The capital has been raised from Danish institutional investors PensionDanmark and Industriens Pension, Sweden’s Andra AP-fonden and Fjarde AP-fonden, Vestas, as well as CIP.
The fund, which has a target size of €1bn, is investing in asset classes based on sustainable feedstock such as waste wood, agricultural biowaste and household and industrial biowaste.
Offtake products from the projects it invests in will include green gas and green fuels, such as renewable natural gas.
CIP said it had secured a portfolio of assets of “development-stage advanced bioenergy assets in Europe” prior to the first close.
Jakob Baruël Poulsen, Managing Partner in CIP, said: “We are very excited about the establishment of our new advanced bioenergy strategy which taps into an attractive market opportunity underpinned by major themes such as the climate agenda, circular economy, and energy independence.
“Obtaining first close commitments of EUR 375 million from some of our large existing investors is an important proof of investor confidence and a testament to our track record.”
Thomas Dalsgaard, Partner in CIP and head of the advanced bioenergy team, added: “There is a very strong market demand for green fuels and circular solutions provided by this investment strategy, underpinned by robust regulatory drivers both in the EU and the US.
“As the global market leader in greenfield renewable infrastructure investments and with a team that has significant experience in feedstock sourcing, CIP is uniquely positioned to invest in this segment.”